Australia vs. China: An Economic Comparison Essay

Australia and chinaware adopt real different frugal trunks in assemble to cater the top hat for their society. However, Australias economic form is much than sure-fire than Chinas and, due to the writers right-wing jimmy administration, will be delibe put in toll of environmental efficiency, work and entrepreneurial resource efficiency and the step of living.The prefatory economic line for any country is that resources are scarce while wants are infinite. This meat that countries must decide what to produce, how to produce and for whom to produce in the most economical and trustworthy way possible. Australia and China two take different approaches to settlement this economic line, even though both idler technically be classified as a mixed economy (Year 11 Economics, 2007). Australia approaches the difficulty from the perspective of what is best for the individual however China believes in doing what is best for the country (Year 11 Economics 2007). These ideals are to a greater extent clearly shown in the importance of merc hapiseplace forces to each country.Australia and China allow different degrees of market forces and government interference in order to best solve the basic economic problem. Australia allows a lot more market-based forces to coiffe what, how and for whom things are to be produced. This means that the competitiveness of the market combined with the need for profit allows Australia to encounter high quality products at competitive prices (Mixed Economies, 2007). However, market forces also determine for whom things are to be produced, which means masses with little or no income can be forgotten and this is where the government interferes.The government works to entertain the rights of workers so that they are not ab utilize by large companies and tries to be more equitable by providing welfare to the disfavor (Mixed Economies, 2007). China believes in a lot more government interference due to its communis tic ideals. The government has the most control over what, how and for whom things are to be produced although market forces until now play a ample part for the minority of Chinese people who have money. China tries to spread its wealth over its huge population however due to its material bodys it is hard to keep get over of and provide for its entire population (An Introduction to Economics, 2007).These ideals are both legal in theory however in practice Australias economic system is more equitable than Chinas. Equity can be determined by two things right in comparison to the dry land and equity within their own country. This is measured with the global living standards and the pencil eraser sugar within the country. The safety net is made up of health, teaching method and welfare three essential things for each person to have in case they fall ill, have a low income or longing to be educated. The standard of living includes the safety net as hearty as life expectancy a nd economic growth and therefore determines equity amongst people in comparison to the rest of the world. This is measured with a champion number called the humanity Development Index (HDI). Australia ranks very highly in the HDI achieving 0.957 in 2005 making it third in the world (Hamel, 2006).In terms of a safety net, Australia provides free health, education and an efficient welfare program. The government uses programs like Medicare, Centrelink and public school facilities to provide lower income workers, the disabled and disadvantaged a fair go (Australian Department of Health and Ageing, 2007). China still has a safety net exactly it is a very scummy one. Health, education and welfare are provided but they are not up to the standards of Australia. In fact, these services do very little to help its improbably large population. This results in a very low HDI of 0.768, making it 81st in the world (Hamel, 2006) Therefore, as Australia has a more effective safety net and a h igher HDI, Australia has a more successful economic system in terms of equity.Australia is also able to use its environmental resources more efficiently than China. Environmental efficiency can be determined by force-out distribution, the resources used and the accessible costs. Australias power distribution is very effective with very few blackouts and 24 hour assistance in case of emergencies (Metcalfe, 2007). Like any other country, Australia has environmental issues however it is stressful to become more environmentally friendly and efficient. Australia is building more fundament and becoming more environmentally friendly. China on the other hand does not have effective pushing distribution. Blackouts are a ordinary thing in China due to the overwhelming demand for energy (Xinzhang, 2007). Right now China faces the problem that there is not passabletransmission capacity to provide additional supplies which results in poor distribution. sear is the main resource used for ene rgy supply in China by a staggering 63.4% compared to 6.9% hydroelectricity (China Today, 2005). Coal use in Australia is significantly less than this with merely 42% of its energy source being sear (Metcalfe, 2007). China has overwhelming carbon dioxide emissions, so overwhelming that China is accountable for 15% of the worlds emissions (World Fact book, 2007). This has very negative social costs with acid rain being a frequent problem for China. 5% of Chinas GDP is spent on nerve-racking to fix the social costs of pollution (China Today, 2007). Not only is this not statically efficient, but it is not dynamically efficient either. Therefore, even though both countries have environmental issues, Australia is able to provide a better power supply with less social costs and so its economic system is more environmentally efficient than Chinas.As well as environmental efficiency, Australias economic system uses its labour and entrepreneurial resources more efficiently than China. Th e effectiveness of labour and entrepreneurial resources can be measured by un date and the degree of allowance of in hush-hush owned patronagees. Australia had an unemployment rate of 5.6% in 2004 and a 4.9% unemployment rate in 2006 (ABS, 2006). This shows unemployment decreasing and more people move into the workforce. This increase in workforce allows more resources to be given to the backing sector and therefore speeds up the economy. As well as this, Australia allows more private businesses than China. In 2004, there were over 3 million privately owned businesses in Australia (ABS, 2004). Not only does this create employment but it promotes consumer sovereignty, giving consumers competitive prices and choice between products. The government only interferes in the case of market failure i.e. national defence and public schools.This is to checker that the needs of the country are met and to try and create equity amongst those who cannot move over the necessities. Therefore, Australia uses its workforce and entrepreneurial resources more efficiently. China however had a 9.9% unemployment rate in 2004 which shows that a lot of labour is not being used effectively (World Tax Inc, 2007). For many of the people who are employed, they are underpaid and overworked which can lead to poor goods and is not very equitable. Also, China does not habituate its entrepreneurial resources as well as Australiadoes. Private business is increase in China but the state-owned and collective enterprises still out number them significantly.In 2004, Chinas first economic census showed that private enterprise had at peace(p) up 49% while state-owned enterprise had gone down 48% (Xinhua News Agency, 2005). The government still rules the majority of business which does not promote competitive quality or give people a choice of goods. The government often interferes even in cases where there is no market failure and unfortunately what consumers demand may not necessarily be ack nowledged and supplied by the government. Therefore, due to better employment rates and better use of entrepreneurial resources, Australias economic system is more successful than Chinas.An effective safety net, high standard of living, environmental efficiency and an efficient workforce are key components in any successful economic system. Australia manages to maintain these components making its economic system highly successful. China on the other hand is still ontogenesis and trying to improve these components. It is almost unfair to compare the two as they are at different stages of economic growth. Perhaps in historic period to come China will become more efficient and equitable and be able to compete with the best economic systems in the world. For now, Australias economic system is more successful than Chinas and only time will tell as to whether it will stay that way.BibliographyHamel, J.(2006) Human Development Report 2006.http//hdr.undp.org/hdr2006/statistics/Xinzhang, L . (2007) City Faces Prospect of Electricity Blackouts.http//www.zoomchina.com.cn/content/ position/25880/138/Metcalfe, L. (2007) Nation Master Energy Facts.http//www.nationmaster.com/country/as-australia/ene-energyCIA World Factbook (2007)https//www.cia.gov/library/publications/the-world-factbook/geos/ch.htmlAustralian governing Department of Health and Ageing (2007)http//www.health.gov.au/internet/wcms/publishing.nsf/Content/ standAustralian Beaureau of Statistics (2007)http//www.abs.gov.au/websitedbs/D3310114.nsf/home/Home?opendocumentChina Today (2005)http//www.china.org.cn/english/2005/Jan/117227.htmXinhua News Agency (2005) China Publishes Results of 1st content Economic Censushttp//www.china.org.cn/english/2005/Dec/151159.htmWorld Tax Inc (2007) Chinas Unemployment Rateshttp//www.worldwide-tax.com/china/chi_unemployment.aspMarland, G., T.A. Boden, and R.J. Andres(2006) Global, Regional, and National CO2 Emissions.http//cdiac.ornl.gov/trends/emis/tre_prc.htmHandouts-Year 11 E conomics (2007) Tim Riley Publications.-Unit 43 Mixed Economies (2007)-The food market Economy How Economies Differ (2006)-Introduction To Economics Chapter 1